TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

7.88
+0.03 (0.38%)
as of Sep 1, 2026, 8:00:00 pm Market Open.
1395 watching
0
Investor Insights
star iconSep 1, 2026, 12:00 am

This summary was created by AI, based on 29 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) is currently undergoing a multi-year turnaround focused on becoming a more pure-play regulated utility after divesting its renewable energy assets. The company is predominantly operating in the US, which has prompted plans for redomiciling to attract more US investors and investors appear cautiously optimistic about its restructuring efforts. However, many experts express concerns about the high levels of debt and the modest earnings growth. While there are positive signs of management's improved execution and focus, there is still a prevailing sentiment of skepticism until the company can demonstrate consistent profitability. The stock is perceived as a potential turnaround candidate, but its history of dividend cuts and operational challenges keep some investors at bay.

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Consensus
Cautious
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Valuation
Undervalued
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Similar
CPX
BUY

AQN vs. CPX CPX is quite high quality, with pretty good torque to Alberta power prices, so if you expect Alberta prices to rally, this one will benefit. AQN is his preference, as it has more diversity in its asset base. AQN has more robust opportunities for growth, plus more leverage to the renewable utilities build out.

BUY
Likes it. Correction in last 4 months has hit the sector. Robust outlook for the next 5 years. Solid management team. Expects continued growth and perhaps increases in dividend. Adding at these prices makes sense.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Nothing is significantly different for the outlook. The whole sector has been weak. And AQN raising money through an issue confused investors. Decent growth is still expected. They raised the dividend in May. Not overly expensive while the cash flow remains solid. Fine for income investors. Unlock Premium - Try 5i Free

TOP PICK
Power demand and renewable power increases. The company did some equity issues that has not been well received. There is also some water holdings that are interesting. There is a stable distribution arm. A steady dividend grower. (Analysts’ price target is $21.21)
TOP PICK

Attractive dividend with a good growth profile. Good ESG candidate so funds should flow into this. In the last little while, we have seen some decline in the sector. An attractive entry price. There is 1400 additional mega watts of energy coming online. A good rewarder of share holders. (Analysts’ price target is $21.01)

PAST TOP PICK
(A Top Pick Jul 08/20, Up 12%) Still likes it and could be another top pick. All the utilities have been hit because bond yields have started to rise. But AQN has a strong growth profile through its capex plan, with $5B of its $9B is happening in 2021. AQN's valuation is in line with peers, but boasts a stronger growth profile. This will let AQN keep generating strong earnings even if bond yields rise.
PAST TOP PICK
(A Top Pick Jul 28/20, Up 7%) Has fallen out of favour, but he is not sure why. One of the worst performers for 2021 for his fund, but still a believer in the company.
WATCH
Sold on valuation. Good business. Mostly US focused. He'll keep it on his radar. Right now, prefers other exposure in that space.
PAST TOP PICK
(A Top Pick May 13/20, Up 3%) Still likes it. It's pulled back with the entire renewable space, so this is a great time to enter. Two-thirds of business are regulated utilities and the rest is renewables. The latter benefits from the US green trend. Pays an attractive 4.5% dividend that the company has just risen 10%. The company expects to grow earnings 8-10% annually in coming 4-5 years.
HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock yields 4.3% currently and is trading at around 13.5x forward EBITDA. They are also reducing leverage. The space is seeing lower investor interest in general, which may be why the stock has struggled recently. No reason to sell. Unlock Premium - Try 5i Free

PARTIAL BUY
The Texas power outage was somewhat of a temporary set-back. These do happen. Short term negatives on companies you like just mean it’s a good time to get in. It is a good time to start building a position in the sector.
BUY

A great way to play the US expansion into renewable power in the coming decade. The valuation has risen, but took a dip during the Texas freeze last winter (was a buying opportunity). The stock is still compelling to buy. Likes it. The renewable stocks ran ahead of themselves in January-February, pricing in too many years of growth, but this correction was healthy. Valuations are still not cheap, but long-term returns still look good. Also consider Boralex and Northland Power.

BUY
It is a good way to play renewable energy. It gives you a nice balance of renewable and non-renewable. They pay a good dividend. Their spending will be 60-70% into renewable in the future. Sometimes money is invested into renewable energy just to be seen doing it.
PAST TOP PICK
(A Top Pick May 13/20, Up 14%) In 2020, chose names that could hold in during an uncertain time. Plans to increase dividend by about 10% this year, possibly mid-high single digit growth going forward. Benefits from de-carbonization.
BUY
You really have to own some renewable power. High growth area. AQN is a good way to play. His top pick in the hybrid renewable sector. Has non-renewables, but its growth projects are all renewable. Valuation is below peers. Yield is around 3.5%.
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